Maryland is raking in millions of dollars more than expected in revenue for fiscal 2010, but taxpayers won't see a cent from the surplus, stateofficials say.
The state is estimating a minimum $170 million increase in the projected $153.8 million surplus for fiscal 2010, giving Maryland coffers an extra $324 million.
The extra money will help plug a nearly $400 million hole left by stalledfederal health care funding, which Gov. Martin O'Malley included in the fiscal 2011 budget that started July 1. The funding hit an impasse in Congress over concerns about the ballooning federal deficit.
"We were counting on that money from the federal government," said David Juppe, senior budget manager for the Maryland Department of Legislative Services. "If it doesn't materialize, the extra money will completely disappear, unfortunately. It will be a wash-out."
Marylanders face a projected budget gap of $1.5 billion in fiscal 2012, according to O'Malley spokesman Shaun Adamec.
The state's revenues are still falling compared with last year and fiscal 2008, but at a less severe level than expected, said David Roose, director of Maryland's Bureau of Revenue Estimates.
With one month of tax collections remaining in the fiscal year that ended June 30, Maryland officials are expectingto take in roughly $120 million more from the individual income tax than projected, $35 million more than expected from the sales tax and $30 million more from the corporate income tax.
The Department of Revenue Estimates is still calculating final revenue figures, which will be available in August, Roose said.
Taxes flow in Tax revenue; Expected surplus
Individual income tax; $120 million
Sales tax; $35 million
Corporate income tax; $30 million
*Rough estimates from the Maryland Department of Revenue Estimates